General Terms and Conditions of WeLend Loan Agreements*
*The below Terms and Conditions are for reference only and the final terms may vary depending on the loan product type. Each loan is subject to the terms and conditions of the signed agreements. WELEND LIMITED reserves its absolute right on any loan approval decision and any disputes.
PLEASE READ CAREFULLY the following terms and conditions of your loan agreement (the “Agreement”) together with the KEY TERMS OF LOAN AGREEMENT and the terms set out in your LOAN APPLICATION (collectively the “Terms and Conditions”) for WELEND LIMITED loans. The Agreement and the KEY TERMS OF LOAN AGREEMENT do not become binding and shall be of no force and effect unless and until WELEND LIMITED (the “Company”, the “Lender”, “we” or “us”) confirms, no later than by the third Business Day (as defined below) after the date of the Agreement, that you have passed the Company’s credit checks (such determination being at the sole discretion of the Company). Upon approval and final confirmation of your loan application (“Final Confirmation”) by WELEND LIMITED, the Agreement shall constitute a binding agreement between you and the Company. By completing your LOAN APPLICATION and submitting your LOAN REQUEST, you are committing to obtain the Loan from the Company on the terms of the Agreement, subject to the Company’s Final Confirmation and Acceptance. You have no right to withdraw your LOAN APPLICATION once the Loan Proceeds are disbursed in accordance with the Disbursement Schedule. For the avoidance of doubt, where the Loan Proceeds are to be paid by cheque, insofar as the cheques have been delivered by the Company in accordance with the Disbursement Schedule, you are required to repay the Company in accordance with the Terms and Conditions regardless as to whether such cheque(s) have been deposited. You are advised to PRINT a copy of the Agreement for your records.
CAPITALISED TERM NOT DEFINED HEREIN SHALL HAVE THE SAME MEANING AS ASCRIBED TO IT IN THE KEY TERMS OF LOAN AGREEMENT.
The Company shall only make available the Loan to you as the Borrower on the terms set out in the Agreement which must be observed by you at all times throughout the term of the Agreement until all sums payable by you to the Company under the Agreement are fully and irrevocably paid.
- The Loan
Subject to the Terms and Conditions (including, but not limited to, satisfaction of the condition precedent that you have passed the Company’s credit checks), the Company agrees to advance the Loan to you. by The Loan Proceeds shall be disbursed to you in accordance with the Disbursement Schedule no later than by the third Business Day (as defined below) after the date of the Agreement. You agree that, for the purposes of the Agreement, your Loan shall be deemed to be disbursed to you on the date of the Agreement. If any part of the Loan Proceeds is required to be paid to a Third Party Credit Provider in accordance with the Disbursement Schedule, you agree that the Company shall pay part of the Loan Proceeds to the Third Party Credit Provider (details of which are set out in the Disbursement Schedule) and such payment, together with the payment of the remaining part of the Loan Proceeds to you, shall constitute full disbursement of the Loan Proceeds by the Company to you.
Monthly Flat Rate shall be defined as:
(total interest payable on the Loan/total principal amount of the Loan)/tenor of the Loan (in months) X 100%
The total interest on the Loan payable by you shall be as set out in the Agreement.
You agree that the Company may apportion the principal and interest payable under each instalment at its sole discretion. You acknowledge that the proportion of interest payable under each instalment may not represent an equal proportion of the principal due under each instalment. Please refer to the Account Dashboard which may be viewed once you log in from the Company’s website for details on the Repayment Schedule (including the amount of interest payable under each instalment). Interest shall accrue on the Loan from the Loan Drawdown Date. You shall pay Interest on the Loan in arrears on each and every relevant Due Date of payment as set out in the Repayment Schedule. The equivalent Effective Rate is calculated based on punctual repayment for all instalments according to the Repayment Schedule until loan maturity.
- You agree to reimburse all such remittance charges (the “Remittance Charges”) that may be incurred by the Company in relation to the disbursement of the Loan, and you hereby authorise the Company to deduct from the Loan Proceeds or, unless otherwise agreed to between you and the Company, debit all such Remittance Charges from your Repayment Account without further notice.
- You hereby agree and undertake to the Company that:
- the Company is hereby authorized by you to deduct from the final approved principal amount of the Loan any outstanding balance under any Refinanced Agreement (if applicable), before the remaining amount is disbursed to you by the Company in accordance with the Disbursement Schedule on the Loan Drawdown Date;
- you shall repay to the Company (i) the final approved principal amount of the Loan and (ii) Interest from time to time accrued on the Loan calculated at the relevant interest rate on the relevant Due Dates as set out in the Repayment Schedule; any balance owing for the account for the Loan (after payment of all instalments) must be repaid by you on the relevant Due Date of Last Instalment which may be round up or down as may from time to time be determined by the Company in its sole discretion.
- unless otherwise agreed to between you and the Company, you shall make all such instalment payments by automatic payment via your Repayment Account and provide the Company with any authority the Company may require to enable it to debit such instalment amount from your Repayment Account. You hereby further agree that you shall at all times organise such automatic payment arrangement with a licensed bank registered in Hong Kong throughout the term of the Agreement, under which an amount equal to each instalment amount is debited from your Repayment Account and paid to the Company on each instalment payment Due Date. If you wish to change the automatic payment service provider, you shall notify the Company at least 30 Business Days (as defined below) before the relevant Due Date of such instalment;
- unless otherwise agreed to between you and the Company, you hereby authorise the Company to debit your Repayment Account for the amount of each instalment payment on the relevant Due Date as set out in the Repayment Schedule; and
- unless otherwise agreed to between you and the Company, you shall at all times maintain a credit balance and sufficient funds in your Repayment Account for repayment of the Loan plus Interest in accordance with the Repayment Schedule.
- Any payment falling due on a day which is not a Business Day, or which would otherwise be due on a non‐Business Day, is instead due on the immediately following Business Day. For the purpose of the Agreement, “Business Day” means a day, other than a Saturday or a Sunday or a public holiday, on which commercial banks are open for business in Hong Kong.
- All your payments shall be made to the Company no later than 12:00 a.m. (Hong Kong time) on the relevant Due Dates in immediately available funds by payment into your Repayment Account or otherwise. Any payment received after 3:00 p.m. (Hong Kong time) on a Business Day is deemed received by the Company on the next succeeding Business Day.
- Payments will be applied by the Company in the following order, firstly, legal and collection fees (if any), secondly, administration fees on overdue amount (if any), thirdly, Interest on the Loan, and lastly, the outstanding principal amount of the Loan; or in any such other order or manner as the Company may from time to time in its sole discretion consider appropriate without prior notice. The Company reserves the right to allocate a higher or lower proportion of any one or more of your instalment payment(s) to interest rather than to the principal amount of the Loan owed by you to the Company, and vice versa, and to make such allocation between the interest and principal amount of the Loan in such manner as the Company may from time to time in its sole discretion consider appropriate without further notice.
- No partial repayment of the Loan will be accepted by the Company except such repayment made in accordance with the Repayment Schedule.
- No request for change of any Due Date(s) after the Loan Proceeds are disbursed to you will be accepted, unless otherwise agreed to by the Company.
- Other fees and charges
- If you fail to pay or repay any amount payable by you to the Company on the relevant Due Date(s), the Company shall be entitled to charge you and you hereby authorize the Company to debit your Repayment Account for a sum of HK$350 per month as its administration fee for making all necessary arrangement to collect such overdue amount for so long as such overdue amount remains due and outstanding.
- You agree to pay to the Company an administration fee of HK$50 if a cheque issued by you to the Company is returned and HK$100 if a payment transfer to the Company is returned for failure by the relevant licensed bank to proceed with your automatic payment instruction due to insufficient funds in your Repayment Account or for any other reason(s). You further agree that such administration fees shall be charged for each attempt by the Company to collect such unsuccessful payment.
- If the period between the Loan Drawdown Date and the First Due Date is more than one month, you acknowledge that the amount payable on the First Due Date set out above comprises interest for the period commencing from the Loan Drawdown Date to the First Due Date. Interest for the days in excess of one month is calculated based on the principal amount of the Loan multiplied by the Effective Interest Rate (which assumes 365 days per year) pro-rated for the relevant number of days. Such interest shall be payable on the First Due Date.
- If the period between the Loan Drawdown Date and the First Due Date is less than one month, you acknowledge that the interest payable on the First Due Date set out above is calculated on the basis that interest accrues for a full month. Such interest shall be payable on the First Due Date.
- You agree to pay to the Company an administration fee of HK$150 if you fail to provide the Company with any authority the Company may require to enable it to debit any instalment payment amount from your Repayment Account.
- If a Due Date is adjusted (with your consent) before the scheduled Last Due Date and results in an extension of the loan maturity date, the amount of interest charged for the extended period (which shall be in addition to the amounts originally due on the original Last Due Date) shall be calculated based on the principal amount of the Loan which would be outstanding as at the date of adjustment multiplied by the Effective Interest Rate (which assumes 365 days per year) pro-rated for the number of days extended and will be payable on the next Due Date. All outstanding payments shall be paid on the extended last due date.
- If a Due Date is adjusted (with your consent) before the scheduled Last Due Date and results in an earlier loan maturity, interest of the final period shall be treated as if the period is for a full month; no adjustment thereto will be made.
You shall indemnify and keep the Company indemnified against all costs and expenses reasonably incurred by the Company in connection with enforcement of, or the preservation of any rights under, the Agreement including, without limitation, all costs and expenses incurred by the Company in engaging legal advisers and/or collection agents or other agents in relation to the recovery of amounts payable under the Agreement.
Subject as otherwise provided in the Agreement, you are entitled to prepay the whole (but not part) of the Loan plus all Interest accrued thereon before the scheduled Last Due Date, provided that:
- You have given to the Company not less than 30 days’ prior written notice stipulating the amount to be prepaid and the proposed prepayment date (the “Prepayment Notice”);
- such prepayment is for the amount of Loan outstanding; and
- such prepayment is inclusive of:
- all accrued but unpaid Interest on the Loan calculated up to and including the proposed prepayment date stipulated in the Prepayment Notice;
- all fees, expenses and charges payable in respect of the Loan calculated up to and including the proposed prepayment date; and
- all administration fees, if any, as set out in Clause 4 (i) above.
If you are an individual, you hereby represent and warrant to the Company that:
- you are a Hong Kong permanent resident with age over 18;
- you are of sound mind and are competent to enter into and perform your obligations under the Agreement;
- all documents and information (including personal data and financial information) supplied to the Company by you or on your behalf in connection with the Agreement are true, complete and accurate in all material respects;
- all forms and agreements bearing your signatures submitted to the Company in support of or in connection with your loan application are signed by you personally and represent your true and genuine agreement to the contents contained therein;
- you are solvent and no bankruptcy, litigation or administrative proceedings are currently made against you or to your knowledge threatened, nor do you have any arrangements with other lenders which might prevent your ability to fulfil any of your obligations under the Agreement. Moreover, you warrant that as long as you owe any amount to the Company, you shall not take any action to declare or apply for bankruptcy;
- the Agreement constitutes legal, valid and binding obligations enforceable against you in accordance with its terms; and
- each of the above warranties is deemed to repeat at all times throughout the term of the Agreement until all sums payable by you to the Company under the Agreement are fully and irrevocably paid by reference to the facts and circumstances from time to time existing.
If you are a limited company, you hereby represent and warrant to the Lender that, in respect of the Borrower:
- it is duly incorporated and validly existing under the laws of Hong Kong;
- the entry into and performance by it of, and the transactions contemplated by, the Agreement do not and will not conflict with any other obligations, including but not limited to any law/regulation, constitutional document/agreement or instrument;
- it has power and authority to enter into the transaction and have taken all necessary actions required;
- its authorised representative(s) signing the Agreement and any other document related to the Agreement or the Loan has(have) been duly authorised by the Borrower to sign such documents on its behalf, and that any such documents evidencing the authority have been obtained or effected and are in full force and effect. The Lender may at any time request the Borrower to produce a copy of any authorisation;
- its shares are not held by a nominee;
- its shares are not held by a trustee for the beneficial interest of another person, nor is it a trustee holding any assets on trust for the beneficial interest of another person;
- it is operating its business from the company address as provided under the Particulars of SME Loan Agreement;
- its business has been operating for at least one year in Hong Kong;
- all documents and information (including financial information) supplied to the Lender in connection with the Agreement are true, complete and accurate in all material respects;
- it is solvent and no insolvency, litigation or administrative proceedings are currently made or threatened against it, nor any arrangements with other lenders which might prevent its ability to fulfil any obligations under the Agreement;
- its payment obligations under the Agreement rank at least pari passu with the claims of all of its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally;
- the Agreement constitutes legal, valid and binding obligations enforceable against the Borrower in accordance with its terms; and
- each of the above warranties is deemed to repeat at all times throughout the term of the Agreement until all sums payable by the Borrower to the Lender under the Agreement are fully and irrevocably paid by reference to the facts and circumstances from time to time existing.
In the event of occurrence of any of the following events of default, the Company may at any time thereafter by notice to you declare that any and all of the outstanding balance of the Loan plus all accrued but unpaid Interest, administration fees, reimbursable expenses and other amounts owing by you to the Company under the Agreement are either (a) immediately due and payable or (b) payable on the Company’s later demand:
- you fail to pay on the relevant Due Date any amount payable by you under and in the manner stipulated in the Agreement when due;
- you fail to duly perform any of your obligations under the Agreement (other than your payment obligation referred to in Sub-‐clause (i) above) and such failure is not capable of remedy or, if remediable, is not remedied within 7 days after notice of such failure from the Company is served to you, or in the opinion of the Company, you are in breach of any provision of the Agreement;
- any representation, warranty or statement made by you in the Agreement or in any form(s) or document(s) delivered to the Company is incorrect or misleading in any material respect when made or repeated;
- you become or are declared insolvent or bankrupt;
- it is or becomes unlawful for you to perform any of your obligations under the Agreement;
- you enter into or are a party to or have any liabilities in respect of any loan agreement, overdraft facility, guarantee, indemnity or letter of credit or any security document, which may inhibit, impede or delay your repayment or the performance of your other obligations under the Agreement;
- you undertake new credit facilities with any financial institution during the first half of your repayment term as described in the Key Terms of Loan Agreement;
- your death;
- if you are a limited company, the following events of default also apply:
- you make a substantial change to the general nature of the business or industry, corporate structure or its management control without prior approval by the Company;
- you enter into any agreement for any acquisition, amalgamation, demerger, merger, corporate reconstruction, change in control, or any sale, lease, transfer or disposal of the business without prior approval by the Company; or
- you have a cross default; or
- under any other circumstances where the Company chooses to exercise its overriding right to payment on demand by deciding, with or without reason, that acceleration of the repayment of the Loan is appropriate.
You agree that in addition to any general lien or similar right to which the Company may be entitled at law, the Company may at any time without prior notice, combine or consolidate any of your accounts (wherever situate) with your liabilities and set off or transfer any sum or sums standing to the credit of any of your accounts in or towards satisfaction of any of the aforesaid liabilities to the Company, whether such liabilities be primary, collateral, several, joint or in other currencies. Further, in so far as your liabilities to the Company are contingent or future, the Company’s liability to you to make payment of any sum or sums standing to the credit of any of your accounts shall to the extent necessary to cover such liabilities be suspended until the happening of the contingency or future event.
You hereby agree and acknowledge that
- the Company may without notice to you assign all or part of its rights and benefits under the Agreement in any manner whatsoever and to any person for such purposes as the Company may solely think fits;
- none of your rights or obligations under the Agreement may be assigned by you to any person; and
- the Agreement shall be binding on and ensure to the benefit of the Company’s and your successors and permitted assigns.
- You undertake to the Company that, from the Loan Drawdown Date until all sums payable by you to the Company under the Agreement are fully and irrevocably paid, You shall:
- promptly inform the Company of any changes to the information (including your personal data and financial information) you supplied to the Company in respect of the Agreement;
- promptly advise the Company upon becoming aware of any event of default or potential event of default as described in Clause 8 or any other factor which might inhibit, impair or delay the performance of your obligations under the Agreement, and upon receipt of a request to that effect from the Company, confirm to the Company that, save as previously notified to the Company or as notified in such confirmation, no such event or factor has occurred.
- You further acknowledge that all notices sent to your last known address by post shall be deemed to have been duly served 2 days after the date of posting.
- Personal Data
- All information provided by you to the Company may be used and disclosed for such purposes and to such persons in accordance with the provisions of the Agreement and the Company’s policies and practices.
- The Company may disclose on a confidential basis to a potential transferee or any other person proposing to enter into contractual arrangements with the Company in relation to or in connection with the Agreement (the “Permitted Disclosees”), or to the Company’s or the Permitted Disclosees’ holding company, affiliates, credit agencies, collection agencies or advisers or any other person providing services to the Company or any Permitted Disclosee, any of your information, information about the transaction, the Agreement and the forms and documents referred to therein as it thinks fit in accordance with the Company’s policies and practices on use and disclosure of personal data as set out in the Company’s Personal Data (Privacy) Policy in effect from time to time.
- You acknowledge that you have received a copy of the Agreement and Personal Data (Privacy) Policy through the Company’s website, and agree to be bound by the provisions therein mentioned.
- You agree and hereby give your consent to the Company that the Company may obtain credit report(s) on you and any of its sureties from any credit reference agency in reviewing your application for credit facilities at any time as it deems necessary. If your consent under the Sub-‐Clause is revoked for whatever reasons, you shall be deemed to have breached the Clause 12 and the Company shall be entitled to exercise its rights under Clause 8 “Acceleration” above as a result of your breach.
- No Appointed Third Party in relation to the Granting of Loans
You confirm that you have not entered into or signed any agreement (the “third party agreement”) with any person other than the Company (“third party”) for or in relation to the procuring, negotiation, obtaining or application of the Loan and/or the guaranteeing or securing the repayment of the Loan (other than an agreement with solicitors instructed by you, if any, for the provision of legal services solely).
The Agreement may be signed in any number of counterparts, all of which, when taken together and delivered to the Company, shall constitute one and the same instrument. Any party may enter into the Agreement by signing any such counterpart.
- You hereby acknowledge receipt from the Company a copy of the Agreement together with the Summary of Provisions of the Money Lenders Ordinance (Cap.163, Laws of Hong Kong).
- The Company reserves the right and shall have sole and absolute discretion to alter any provisions under the Terms and Conditions, the principal amount or interest rate, charges, fees and/or disbursement applicable to the Loan from time to time by notice to you of such alteration in such manner it thinks fit.
- Notwithstanding anything to the contrary contained in the Agreement, the Company may, in its sole and absolute discretion, modify, cancel or terminate the Loan or any part thereof at any time without any liability. In such event, the balance of the Loan together with all outstanding accrued Interest thereon and all other sums payable hereunder shall be repayable by you at any time upon the Company’s first demand.
- The illegality, invalidity or unenforceability of any provision of the Agreement under any law does not affect its legality, validity or enforceability under any other law nor the legality, validity or enforceability of any other provision.
- The Terms and Conditions shall form and shall be deemed to form an integral part of the Agreement, and a copy thereof is available for you to download from the Company’s website.
- The Agreement shall be governed by and construed in accordance with the laws of Hong Kong. You and the Company have agreed to submit to the exclusive jurisdiction of the courts of Hong Kong for all purposes relating to the Agreement.
- In case of discrepancy between the English and Chinese versions of the Terms and Conditions, the English version shall prevail.
- The Agreement and Disbursement Date is subject to the receipt of borrower’s signed Loan Agreement and Direct Debit Authorization Form.
Terms and Conditions of the Guarantee for Small and Medium Enterprise (SME) Loans for Limited Companies
- Guarantee and indemnity (the “Guarantee”)
- In consideration, inter alia, of the Lender, at the request of the Borrower and the Guarantor, agreeing to enter into the Agreement and to make the Loan subject to and on the terms and conditions of the Agreement and of other good and valuation consideration (the receipt and adequacy of which the Guarantor hereby acknowledges), the Guarantor irrevocably and unconditionally:
- guarantees to the Lender punctual performance by the Borrower of its obligations under the Agreement;
- undertakes with the Lender that whenever the Borrower does not pay any amount when due under or in connection with the Agreement, he shall immediately on demand pay that amount as if he was the Borrower; and
- agrees with the Lender that if any obligation guaranteed by him is or becomes unenforceable, invalid or illegal, he will, as an independent and primary obligation, indemnify the Lender immediately on demand against any cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under the Agreement on the date when it would have been due.
- The Guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Borrower under the Agreement, regardless of any intermediate payment or discharge in whole or in part.
- If any discharge, release or arrangement (whether in respect of the obligations of the Borrower or the Guarantor or any security for those obligations or otherwise) is made by the Lender in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of the Guarantor under the Guarantee will continue or be reinstated as if the discharge, release or arrangement had not occurred.
- The obligations of the Guarantor under the Guarantee will not be affected by an act, omission, matter or thing which, but for the Guarantee, would reduce, release or prejudice any of its obligations under the Guarantee (without limitation and whether or not known to it or the Lender) including:
- any time, waiver or consent granted to, or composition with, the Borrower or the Guarantor or other person;
- the release of the Borrower or any other person under the terms of any composition or arrangement with any creditor of the Borrower or the Guarantor;
- the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, execute, take up or enforce, any rights against, or security over assets of, the Borrower or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;
- any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the Borrower or any other person;
- any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of the Agreement or any other document or security including any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under the Agreement or other document or security;
- any unenforceability, illegality or invalidity of any obligation of any person under the Agreement or any other document or security;
- any insolvency or similar proceedings; or
- the Agreement not being executed by or binding upon any other party.
- The Guarantor waives any right he may have of first requiring the Lender to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under the Guarantee. The waiver applies irrespective of any law or any provision of the Agreement to the contrary.
- Until all amounts which may be or become payable by the Borrower under or in connection with the Agreement have been irrevocably paid in full, the Lender may refrain from applying or enforcing any other moneys, security or rights held or received by the Lender in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantor shall not be entitled to the benefit of the same.
- Until all amounts which may be or become payable by the Borrower under or in connection with the Agreement have been irrevocably paid in full and unless the Lender otherwise directs, the Guarantor will not exercise or otherwise enjoy the benefit of any right which he may have by reason of performance by him of his obligations under the Agreement or by reason of any amount being payable, or liability arising, under the Guarantee:
- to be indemnified by the Borrower;
- to claim any contribution from any other guarantor of or provider of security for the Borrower's obligations under the Agreement;
- to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Lender under the Agreement or of any other guarantee or security taken pursuant to, or in connection with, the Agreement by any Lender;
- to bring legal or other proceedings for an order requiring the Borrower to make any payment, or perform any obligation, in respect of which the Guarantor has given a guarantee, undertaking or indemnity under the Guarantee;
- to exercise any right of set-off against the Borrower; and/or
- to claim or prove as a creditor of the Borrower in competition with the Lender.
If the Guarantor shall receive any benefit, payment or distribution in relation to any such right, he shall hold that benefit, payment or distribution (or so much of it as may be necessary to enable all amounts which may be or become payable to the Lender by each of the Borrower and the Guarantor under or in connection with the Agreement to be paid in full) on trust for the Lender, and shall promptly pay or transfer the same to the Lender or as the Lender may direct for application.
- The Guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by the Lender
The Guarantor hereby represent and warrant to the Lender that:
- he is a Hong Kong resident with age over 18;
- he is of sound mind and is competent to enter into and perform his obligations under the Agreement;
- he is the sole shareholder or the majority shareholder of the Borrower;
- he is the sole director or one of the directors of the Borrower;
- all documents and information (including personal data and financial information) supplied to the Lender by the Guarantor in connection with the Agreement are true, complete and accurate in all material respects;
- all forms and agreements bearing the Guarantor’s signatures submitted to the Lender in support of or in connection with the Agreement are signed by the Guarantor personally and represent his true and genuine agreement to the contents contained therein;
- the Agreement constitutes legal, valid and binding obligations enforceable against him in accordance with its terms; and
- each of the above warranties is deemed to repeat at all times throughout the term of the Agreement until all sums payable by the Borrower to the Lender under the Agreement are fully and irrevocably paid by reference to the facts and circumstances from time to time existing.
- Important Notice to the Guarantor
The SME Loan Agreement (the “Agreement”) incorporates a personal guarantee (the “Guarantee”) and is an important legal document. Before signing the Agreement, you should read the Agreement including the Guarantee carefully. You should seek independent legal advice from solicitors of your own choice to make sure you understand your commitment and the full consequences of your signing the Agreement.
The Agreement is a legally binding document. You should sign the Agreement only if you agree to be legally bound by its terms.
If you sign the Agreement, you will become liable instead of, or as well as, the Borrower under the Agreement. Your liability under the Guarantee will be limited to:
- the amount outstanding under the Loan (as defined in the Agreement) owing by the Borrower;
- the amount of any additional loans the Lender has made available or may subsequently make available to the Borrower with your written consent;
- all costs and expenses payable by the Borrower under the Agreement;
- the expenses payable by you under the Agreement; and
- all interest, default interest, late charges and other charges charged on any of the above sums.
You will be required to pay immediately under the Guarantee on written demand from the Lender. You acknowledge that before signing the Agreement you have been advised to seek independent legal advice on the terms of the Agreement. You also acknowledge that you have received, read and understood the Agreement and any agreement in relation to the Loan(s).
You may give us three (3) months’ notice in writing to terminate the Guarantee. On the expiry of such notice, your liability will be limited to such amount for which you are actually or contingently liable under the Guarantee as at the date of expiry together with any further costs, expenses, interest, default interest, late charges and other charges payable by the Borrower up to the date of actual payment and the expenses payable by you, regardless whether we have made a demand for payment against you prior to such expiry. Your liability under the Guarantee will only extinguish when you have fully paid us all such amounts due under the Guarantee.